Piper Sandler Advises Heubach and SK Capital on Acquisition of Clariant Pigments

Rhea-AI Summary

Piper Sandler has advised Heubach Group, alongside SK Capital Partners, in acquiring Clariant’s Pigments Business for approximately CHF 805 million, with a potential additional CHF 50 million tied to 2021 performance. This acquisition is expected to create a global leader in pigments with annual sales exceeding €900 million. Clariant will reinvest for an ownership stake to support the combined entity's growth. The deal is subject to customary approvals and is anticipated to close in the first half of 2022.

Positive

• Creation of a global pigments leader with projected annual sales over €900 million.
• Clariant's reinvestment signifies confidence in the growth potential of the combined business.

Negative

• Transaction value at CHF 805 million may strain financial resources.
• Dependence on the 2021 performance for an additional CHF 50 million payment introduces uncertainty.

Piper Sandler & Co. chemicals & materials investment banking group (The Valence Group) announced today that it has advised The Heubach Group, in partnership with SK Capital Partners, on their acquisition of Clariant’s Pigments Business. The combined business will operate under the Heubach name, creating a global pigments leader generating over €900 million in annual sales.

The transaction values Clariant Pigments at approximately CHF 805 million, with additional consideration of CHF 50 million contingent on the 2021 financial performance of the business unit. As part of the transaction, Clariant will be reinvesting for an ownership stake in the combined business, demonstrating its continuing commitment to the success of Clariant Pigments and the substantial growth opportunity in the combination with Heubach.

Closing for the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2022.

Headquartered in Langelsheim, Germany and with sites across Germany, US, and India and sales offices around the world, Heubach is a leading global producer of high-quality organic, inorganic and anticorrosive pigments and pigment preparations. Heubach has more than 200 years of experience in pigments production as one of the first-ever manufacturers of pigments. Heubach produces c. 35,000 tonnes of pigment volumes per year and employs over 1,000 people.

SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term value. SK Capital aims to utilize its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $11 billion annually, employs more than 16,000 people globally and operates 150 plants in 28 countries. The firm currently has greater than $5 billion of assets under management.

Clariant (SWX:CLN) is a focused and innovative specialty chemical company based in Muttenz, near Basel/Switzerland employing more than 13,000 globally. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources.

ABOUT PIPER SANDLER
Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Sandler Hong Kong Ltd., authorized and regulated by the Securities and Futures Commission. Private equity strategies and fixed income advisory services are offered through separately registered advisory affiliates.

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FAQ

What is the value of the acquisition involving Clariant's Pigments Business?

The acquisition is valued at approximately CHF 805 million, with an additional CHF 50 million contingent on 2021 financial performance.

Who advised on the acquisition of Clariant’s Pigments Business?

Piper Sandler advised Heubach Group and SK Capital Partners on the acquisition.

When is the acquisition of Clariant's Pigments Business expected to close?

The acquisition is expected to close in the first half of 2022, subject to customary conditions and approvals.

What are the projected annual sales after the acquisition of Clariant's Pigments Business?

The combined business is projected to generate over €900 million in annual sales.

What strategic importance does Heubach see in acquiring Clariant's Pigments Business?

The acquisition is aimed at creating a global leader in pigments, enhancing market position and growth opportunities.